Crypto Gaming Platform PlayDapp Hacked, Losing Millions Worth of PLA Tokens
Crypto gaming and NFT platform PlayDapp recently experienced two significant security breaches, resulting in the theft of millions of dollars worth of PLA tokens. The hacker was able to mint a staggering 1.79 billion PLA tokens, equivalent to over $290 million, through these exploits and subsequently began laundering the funds.
According to a report from blockchain analytics firm Elliptic, the unauthorized wallet responsible for the breaches minted 200 million PLA tokens valued at $36.5 million on February 9, likely due to a compromise of the platform’s private key. In response to the initial breach, PlayDapp reached out to the exploiter via an on-chain transaction, urging them to return the stolen funds by 3:00 a.m. ET on February 13. The platform offered a $1 million white hat reward for compliance. However, negotiations proved unsuccessful as the hacker displayed no willingness to assist in the recovery of losses. Instead, on February 12, the hacker minted an additional 1.59 billion PLA tokens, worth $253.9 million, and began laundering the funds through various cryptocurrency exchanges.
Elliptic highlighted the potential difficulty the hacker may face in selling the newly-minted tokens. Prior to the breaches, the total circulating supply of PLA tokens stood at 577 million, making it challenging for the exploiter to find buyers at a price close to their market value before the hacks occurred.
In response to the breaches, PlayDapp paused the PLA smart contract on February 13. The platform communicated on social media platform X, stating that it needed to conduct a snapshot for migration and requested a halt in transactions. PlayDapp assured users that it was taking measures to protect their assets and pledged to provide regular updates to the community. The platform is currently working alongside crypto exchanges, blockchain forensic firms, and law enforcement agencies to rectify the situation. It is actively tracking the minted and swapped tokens and exploring potential migration solutions, including the possibility of an airdrop.
As of 10:55 a.m. ET on February 13, the PLA token was trading at $0.15, reflecting a 2.9% decrease over the past 24 hours. Investors and users of PlayDapp will be closely monitoring the platform’s progress as the fallout from these security breaches continues to unfold.
Analyst comment
Negative news. The hacking of PlayDapp and theft of millions worth of PLA tokens raises concerns about the platform’s security and impacts investor confidence. The market may see a decrease in the value of PLA tokens as the hacker attempts to sell the newly-minted tokens. PlayDapp’s response, including halting transactions and working with law enforcement, may help mitigate the impact, but the fallout is likely to continue affecting the market in the short term.
